Why I stopped doing business with Kagi.
Overview
Matt’s Hack TV was something I developed in 1998 to fill a particular need. It's nothing glamorous, and it's not a high-volume item. It underwent some revisions and was subsequently stolen by Ariston Technologies (now out of business) and its president Mr. Lazarous Bontour, and sold for their own profit without my knowledge or consent.
More recently, though, what has effectively killed this software is Kagi, a company widely used to process shareware fees for small developers. The catalyst for this fallout was an unreasonable user demanding a refund of his $10 shareware fee. Kagi granted his request, over my objections, and then billed me an additional $5 for the chargeback amount. Unbeknownst to me, Kagi imposes its own terms of sale for the software, which violated the terms I set down. I found the repercussions of their decision to be unacceptable since it committed me to provide support, service, and customer satisfaction that no small developer can provide. Repeated attempts to contact Kagi on this matter have gone unanswered, so I had no choice but to terminate our arrangement. The letter below should provide most of the gory details.
--Matt Warner, 24 January 2002
Fifth and final attempt to elicit a response from Kagi
To: "Kee Nethery, Kagi CEO" <kee@kagi.com>
From: Matt Warner <matt@warnertechnology.com>
Subject: Fifth Attempt: Kagi's Refund Process
Cc: vendor@kagi.com
Bcc:
X-Attachments:
I established a business relationship with Kagi in 1998. I have, at present, only a single $10 shareware product, and it is not a high-volume sales item. Recent events have made it clear that this relationship has significant problems, the largest of which is a failure to communicate. Equally serious are the legal ramifications of Kagi's actions in providing refunds. I speak specifically of the situation where a customer paid the shareware fee, was given an unlock key, and a month later decided he wanted a refund. Over my objections, Kagi issued the refund without comment. My repeated requests for clarification have been ignored. I feel the situation breaks down as follows:
1. A major reason vendors use the shareware paradigm is because they cannot provide guarantees, 24x7 support, or warranties--many of us also have day jobs.
2. Shareware allows customers to test out a product for functionality and compatibility before purchase.
3. I don't believe I surrendered the right to set the terms of sale for my shareware application: the fee only provides the license string, not a guarantee of satisfaction nor support, much less support in a given time frame.
4. A registration key was sent to the customer via email on 7 December. On 22 December, a Saturday, the customer sent me the first email requesting assistance although providing almost no details of the problem. Two days later, 24 December, the day before Christmas, he demanded a refund. Both the time frame and text of the email messages demonstrate that this person has unreasonable expectations.
5. The customer's reason to Kagi for a refund was a vague "Customer is unsatisfied with this product, states that it does not work," per the email I received from Kagi. Without commenting on my reasons for denying the refund, Kagi credits back the customer's card. Not only am I out the $10 shareware license, minus Kagi's fee, but I am additionally penalized 50% of the application's sale price for the chargeback.
6. Kagi sends no instructions to the customer informing them of their legal obligation to destroy their license key and software. The customer has a free application and the vendor has a black eye.
7. Kagi has effectively obliged me to provide support, customer satisfaction, warranties, and guarantees by granting customer refunds, even when they are unreasonable and violate the terms of the shareware license.
8. Commercial software giants like Microsoft charge a separate fee for support.
It saddens me that we have reached this point after several years of otherwise satisfactory dealings. In light of the items listed above, combined with Kagi's refusal to respond to my requests for clarification, however, I have no choice but to discontinue our business dealings effective immediately. I cannot do business under the terms listed above, and I am now seriously reconsidering my plans for future shareware applications--without someone who can process shareware fees while abiding by the licensing terms, shareware becomes a very difficult proposition. Please close my Kagi email account (mwarner@kagi.com). Do not process any more payments for Matt's Hack TV.
Disillusioned,
Matthew J. Warner
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